Foreign minister Joseph Wu condemned China’s “crude actions” as he made the announcement.

Taiwan President Tsai Ing-wen. File photo: Taiwan gov’t.

“We will not engage in dollar diplomacy with China,” said Wu, adding that El Salvador had been asking for “huge funding” for a port development project which Taiwan was unwilling to give because it would leave both countries in debt.

The move leaves Taiwan with just 17 allies around the world as a growing number switch recognition to China, which sees the self-ruling democratic island as a renegade part of its territory.

Relations between Taipei and Beijing have worsened since president Tsai Ing-wen came to power as her government refuses to acknowledge that Taiwan is part of “one China.”

China has stepped up its poaching of Taiwan’s allies since Tsai became leader in 2016.

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